As a business owner, it’s important not to miss any opportunities to streamline your business and make the most of your revenue. A well managed cash flow is a crucial aspect of every business, and managing a cash flow requires attention to your expenses.
It can be difficult to determine what you can and can’t consider tax deductible purchases, especially for the uninitiated. When you’re running a business, you’re busy enough dealing with your other responsibilities and it can be hard to keep yourself clued up when it comes to making the most of the books. It is, however, an integral part of keeping the business running efficiently, so let’s take a look at some things for you to keep in mind.
What to claim as expenses
Salaries, bonuses, commissions, pensions and nearly all compensation for employees. Whether they’re full time, part time or contracted you can likely claim for it.
TrainingIf training of employees incurs a cost then you can generally claim it as tax deductible. This covers courses relevant to the business, and is a great opportunity and encouragement to keep your staff engaged, motivated and up to date with relevant training.
Tax relief for childcare costs can be extremely generous. For example, for payments to registered childminders and nurseries, also out of hours clubs run on school premises or by local authorities.
Marketing and Advertising
Costs incurred through the promotion of your business can often be considered tax deductible expenses. Brochures, flyers, web hosting charges, domain registration fees and much more.
You can find tax relief for a variety of costs relating to your office. That includes rent, supplies and utilities. Software subscriptions, postage, ink cartridges and more all fall under this category.
If you’re working full time from a home office, as many of us now are, or you work from home on occasion, you may find significant costs that can be considered expenses. You may be surprised how much of your monthly bills could be tax deductible, including lighting, heating and council tax.
This is not an exhaustive list, and there are plenty of other areas and purchases which can be utilised to minimise your tax liabilities. There may also be areas which you believe to be deductible but which, in fact, are not. For this reason, you should always seek professional advice before making any final decisions.